An Iowa farmland auction in Sioux County, just outside Orange City, is resetting the top of the market. A 35.5-acre tract sold on Dec. 1 for $32,000 per acre, and Jim Rothermich of Iowa Appraisal says it’s the highest auction price he has recorded in the state.
“It is a 35-and-a-half-acre tract that goes for $32,000 an acre,” Rothermich says. “As far as my data goes, I keep track of all the land auctions in Iowa, that’s the highest. It set a new record yesterday in Iowa.”
He says the previous record was $30,000 per acre, also in Sioux County, set in November 2022, and he’s quick to point out that while Sioux County regularly posts some of Iowa’s biggest numbers, this one still stands apart.
“The last record is $30,000 an acre, and that is in Sioux County also back in Nov. 11, 2022,” Rothermich says. “So it’s not unusual to see those huge prices in Sioux County. It’s a heavy livestock and dairy county. They need those acres to apply animal waste, and they need the corn production to feed those animals. So it’s not unusual to see that, but that is definitely a high price — no doubt about it.”
No Comment......SOLD! SOLD! SOLD! $1.13+ million or $32,000/acre; purchased by local farmer to produce corn/soybeans. pic.twitter.com/hMeCFJjvjx
— Jim Rothermich, MAI, ARA, ALC (@theLandTalker) December 1, 2025
A Farmer Bought the Land, Not an Investor
At a time when producers are watching margins and questioning who is really driving top-end land prices, Rothermich says this record isn’t attributed to a Wall Street fund or an out-of-state investor. According to the auctioneer, the winning bidder is a farmer, and the land is positioned to fit directly into an existing local operation.
“According to the auctioneer, it is a farmer buyer,” Rothermich says. “And the highest and best use of this farm is to raise corn and soybeans. I understand it is an adjoining landowner, and there again, it’s a heavy livestock area and dairy area. There’s some large dairies just right around there, and they’re going to use that land.”
That adjoining landowner angle matters in competitive auctions, where neighbor value — operational fit, access and scale — can turn into aggressive bidding when a tract comes up for sale.
According to a local source, that dynamic played out in this sale and helped drive the final price higher. The source told Farm Journal the winning bidder operates a large Holstein dairy heifer replacement business, and the tract for sale was located near their existing operation. But competition for the land, and the reason the price went so high, is there was a bidding war with another farmer whose property borders the 35.5-acre parcel, pushing the price well above expectations.
Investor Pressure is Still Real, Amplifying the Top End of Farmland Prices
Rothermich says he can’t say for certain whether investor bids help push the Dec. 1 price to a record. But across Iowa, he says auctioneers describe a consistent trend: Investors, often with local ties, are showing up and competing hard, sometimes forcing farmers to dig deeper for high-quality acres.
“I don’t know if that is the case [in this auction],” he says. “But just visiting with different auctioneers across the state, they’re telling me these investors with local ties, they’re in the market, and they’re pushing these farmers to buy land. Some of those investors are getting them bought, but those local farmers on high-quality land are competing with those guys, and it’s making a difference on high quality.”
In other words, even when a farmer has the winning bid, the bidding atmosphere can still be shaped by investor presence particularly on ground that fits the region’s strongest operations.
Not many $30,000+ sales, but Plenty of Big Numbers in Iowa and Surrounding States
Rothermich says he doesn’t see other Iowa auction results above $30,000 per acre so far this year, but he does track multiple sales above $20,000, including county records.
“I haven’t seen anything over $30,000 this year,” he says. “Now we have several over $20,000 an acre. As a matter of fact, in Mitchell County on Sept. 10 of this year, there is a short 80-acre tract that brings $24,400 an acre, and that is a new price record for that county.”
And Iowa isn’t alone. Rothermich says he’s collecting late-year auction results around the region that show strength continuing across multiple Corn Belt states.
“It’s not just Iowa; we’re seeing these strong prices,” he says. “South Dakota has one farm sell for $18,200 an acre. One in Illinois is $20,150 an acre; I’ve seen several over $20,000 in Illinois. Missouri: $20,000 an acre. Minnesota: a couple tracts bring $17,000 an acre. So it’s not just an Iowa thing; it’s around the surrounding states of Iowa.”
Tight Margins, Strong Land Values Comes as a Surprise
Even with improved commodity prices compared to last year, many producers still describe the current environment as belt-tightening territory: Inputs remain high, and margins are pressured.
That’s why Rothermich says the late-year auction strength, especially the steady stream of standout sales, is catching his attention.
“It does surprise me,” he says. “I am very surprised at the volume. November is typically our busiest month for land auctions, and I’ve been surprised every week in the month of November — some of the strong prices coming out.”
Key Divergence Between High Quality and Lower Quality Farmland
Rothermich says there’s no clearer evidence of a two-speed land market than what’s happening on the lower-quality end, where more auctions are failing to meet seller expectations.
He says he tallies 10 no-sales in Iowa in November, which he calls a high number for the month that typically dominates the auction calendar.
“One area where we are seeing some weakness is the lower quality farms,” he says. “Those are being affected; there’s no doubt about that. And as I say, I keep track of all the land auctions in Iowa; there are 10 no-sales in November. That’s a high number for no sales in a month. So there’s no doubt lower quality farms are being affected.”
When asked directly whether the Dec. 1 record sale signals a widening gap between premium and marginal ground, Rothermich says absolutely.
“The people that have the money to buy that high-quality ground, they’re going after it. There’s no doubt about it,” he adds.
And when it comes to why lower quality farms are more likely to stall at auction, he says the buyer pool changes, especially the presence (or absence) of investors.
“They’re on those lower quality farms,” he says. “You don’t have those local investors competing with the local farmers on that. So those local farmers are kind of driving that market on that, and they’re definitely pulling back. There’s no doubt about it.”
He ties that pullback directly to economic pressure with the weaker performance in some land values a sign of current economic stress.
What to Watch Over the Next Six Months
Rothermich describes today’s auction environment as a market with two tails: a premium segment with strong competition and a lower-quality segment facing resistance. That split makes the overall market feel uneven, even when the headlines are bullish.
“It’s kind of got two tails right now,” he says. “The high quality is selling very good, and the low quality is being affected by the current economy. So it’s kind of a choppy market. That’s how I’d describe it right now.”
Still, he says two fundamentals support stability over the next six months: lower auction volume, which tends to firm prices, and grain prices higher than last year.
“Looking at the number of auctions for November, December, we’re going to be down for the year,” he says. “And that’s been a three-year trend. Lower auction volume is supportive to prices. So as I look at current grain prices, we’re higher than we were last year. So with those two fundamentals, it’s signaling we’re probably going to have a stable market the next six months.”
He adds that good yields, though not necessarily record yield, also help underpin buyer confidence in the near term.
“The lower volume of sales, good harvest … yields are good but not as good as last year,” he says. “Grain prices are higher than they were last year, and we still have buyers out there wanting to get their hands on some high-quality farm ground.”
The $32,000-per-acre Sioux County auction isn’t just a number; it’s a marker of how aggressively buyers are pursuing top-end Iowa farmland, particularly in regions where acres fit into livestock- and dairy-driven demand. The fact Rothermich says the buyer is a farmer adjoining the tract reinforces that operational value is still a powerful force.
At the same time, the record sale lands in a market that’s increasingly divided: Premium farms draw competition while lower-quality farms see more no-sales, signaling that economic pressure is shaping buyer behavior — just not evenly across all acres.